Unity Bancorp Reports Quarterly Earnings of $15.5 Million and Full Year Earnings of $58.0 Million
Clinton, NJ -- Unity Bancorp, Inc. (NASDAQ: UNTY), parent company of Unity Bank, reported net income of $15.5 million, or $1.52 per diluted share, for the quarter ended December 31, 2025, compared to net income of $14.4 million, or $1.41 per diluted share for the quarter ended September 30, 2025. For the twelve months ended December 31, 2025, Unity Bancorp reported net income of $58.0 million, or $5.67 per diluted share, compared to net income of $41.5 million, or $4.06 per diluted share, for the twelve months ended December 31, 2024.
James A. Hughes, CEO, commented on the financial results:
“We are pleased to report a record year for Unity Bancorp, Inc. For the year, we generated $58.0 million in net income, or $5.67 per diluted share, delivering a 2.17% ROA and 18.07% ROE. This represents a $16.5 million, or 39.8% increase in net income from the prior year. For the fourth quarter, net income totaled $15.5 million, or $1.52 per diluted share, representing 2.20% ROA and 18.08% ROE.
In 2025, we continued to execute on our organic growth strategy, achieving meaningful expansion across loans and deposits. Gross loans increased $284 million, or 12.6%, driven primarily by growth in our commercial portfolios. Total deposits grew $224 million, or 10.7%, with customer deposits (ex-brokered) increasing $168 million, or 8.9%. As we enter 2026, our lending pipelines remain healthy, and we believe a constructive economic backdrop will support Unity’s ability to continue operating as a high-performing institution.
While our overall performance was strong, one large owner-occupied commercial mortgage relationship migrated to nonaccrual status late in the fourth quarter. This $15.5 million credit is well-secured and is not expected to result in a material loss, if any. However, this individual credit represented a $1.6 million pre-tax impact to the Company’s income statement due to general reserve build up and interest income reversals. This borrower’s core business was impacted by the tariffs imposed on Chinese imports, which had a negative impact on their global cash flow. The credit is 42 days past due as of December 31, 2025 and we will continue to monitor the relationship closely.
For the full version of the Company's quarterly earnings release, including financial tables, please visit Q4 Earnings